Cash flow affects the entirety of your company. In order to stay in business, you need to have enough cash on hand to pay your suppliers, labour costs, and other expenses when they’re due. Most businesses fail because of cash flow issues, which is why you need to prioritize optimizing your liquidity. One of the easiest ways to do this is with a cash management solution.
A cash management solution can allow you to have more money when you need it, so you can keep running your company smoothly.
The first step to improving liquidity is performing an assessment in order to see where in the cash process you have weaknesses. A cash management specialist can help you understand which areas you can improve upon. By analyzing your current cash strategies and procedures with a specialist, you’ll likely discover new ways to maximize your company’s liquidity and better manage your costs and expenses. A specialist can recommend a configurable and unique cash management solution with financial tools and equipment that will provide you with better access to your cash so it’s available when you need it. This will allow you to stay competitive and maintain financial flexibility.
Cheque Scanner
Your cash management solution might include the use of a cheque scanner. This device allows you to process and deposit the cheques you receive from your clients in digital form. Many companies wait to make a trip to the bank to deposit cheques until they have a stack of them in order to reduce the amount of times they have to commute back and forth to the branch and stand in line. Others simply wait because they don’t have the time. But this means you’re just sitting on money, unable to access it.
But with a cheque scanner, you can deposit your cheques right away, from the comfort of your home or office. And because they're deposited digitally, you get access to your funds faster, which optimizes your cash flow situation so you can make your outflow payments sooner.
Currency Recycler
Your cash management solution could also include the use of a currency recycler. This machine accepts and dispenses cash on a cycle—the same money that goes in, goes right back out. What’s the benefit of recycling cash? You keep using the same bills and coins, so you don’t need to have as much cash flowing through your registers or being deposited at the bank and you reduce the frequency of buying coin and notes from the bank. This can significantly improve your cash flow.
Cash Counters and Sorters
Currency counters and sorters can save your employees a lot of time. When the machines do the work automatically, at an incredibly fast speed and with a great accuracy rate, you can spend less money on labour expenses. Your staff can come in later and leave earlier, and you can also have fewer employees in the cash room. Since your payroll costs will be one of your biggest expenses, reducing them can really help your cash flow. The less money you spend on labour, the more liquid cash you have access to. Additionally, these machines can help you reduce losses due to human error and internal theft, so you can keep more of your hard-earned money flowing through your business.
For the Good of Your Business
In order for your business to stay afloat, stay competitive, and run smoothly, you must optimize your cash flow in order to improve your liquidity. A cash management solution that includes a cheque scanner, currency recycler, and cash counters and sorters can provide you with access to your cash faster, reduce the amount of cash needed for transactions, and eliminate the expense of labour, error, and internal theft. For the good of your business, you should invest in a cash management solution.
